Dow Jones achieves its highest daily close in 3 weeks
US indices closed with slight changes, with a tendency to decline in yesterday’s session, Tuesday, under pressure from rising bond yields, which led to the return of fears that interest rates will remain high for a long period.
Previous data showed that US retail sales increased more than expected in September as families increased their car purchases and spent more at restaurants and bars.
Shares of chipmakers also fell after the Biden administration said it plans to halt shipments of advanced artificial intelligence chips to China.
Performance of major US indices:
The Dow Jones index rose only 0.04%, equivalent to about 13 points, but recorded its highest close in 3 weeks.
The Nasdaq Composite Index fell by about 0.25%, and the S&P 500 Index closed flat, with 4 out of 10 major sectors declining.
Positive earnings reports from companies, including Bank of America, helped limit losses in US indices.
Nvidia shares
Nvidia shares fell by 4.7% in Tuesday’s session, recording the largest daily loss in two months, with the company losing more than $53 billion of its market value in one day.
These losses came after the US administration said it plans to halt shipments of advanced artificial intelligence chips to China, although the world's most valuable chip manufacturer said it does not expect a tangible near-term impact on financial results from these restrictions.
Bank of America shares
Bank of America shares rose by about 2.3% in Tuesday’s session to record its highest close in 3 weeks, as the bank added $5 billion to its market value in one day.
These gains came after the bank announced profits that exceeded expectations in the third quarter, supported by interest income, in light of the high interest rates and loan growth.
The second largest US bank by assets announced a 10% rise in profits to $7.8 billion, or $0.90 per share, in the third quarter, versus expectations of only 82 cents per share.
